September 27, 2013 1:57 PM Subscribe
A friend in Mexico does some consulting for a US company. He has an account in a US bank, where he receives payment for that work.
The bank just sent him a W-8BEN form and we are not sure how to fill it.
posted by clearlydemon to law & government (2 answers total)
He's a Mexican citizen and he lives and works in Mexico. We know Mexico has an income tax treaty with the US. And that's all we know.
This statement in the form is a bit confusing:
"The income to which this form relates is not effectively connected with the conduct of a trade or business in the United States".
As he is not physically working in the US, this is true, right?
Should we just send the documentation, claim Tax Treaty Benefits and let the IRS sort it out? Or should we look for an accountant in the US?
We know you're not our accountant or lawyer. Thanks!